Need help. Ready to throw up. :(

[mslaw]

As you can see from my previous posts, our case is being petitioned to be dismissed in October. We were over the median because of dh's yearly bonuses and because of my income. However, I lost my job about a week before our 341. Of course, that's not being reflected on our documents and the UST is wanting to dismiss our case.

Now, we have not enough money. Our attorney won't even return my phone calls. Left messages on Friday and today. Our house will go into foreclosure once the case is dismissed. And we have a 2nd mortgage so they will come after us for that. We can't fund a Ch13 on the income we have now.

I am devastated. I don't know what to do. I see lawsuits and wage garnishment in our future and I feel sick. We have 5 children to provide for.

Any advice? What do we do? If we wait another 6 months to refile, what if it doesn't go through then? What if the bank comes after us for the deficiency judgment? We thought about trying to do a deed in lieu of foreclosure but I doubt the bank will agree to it. Both the 1st and 2nd mortgage are with the same bank.

Please help.

[kawh]

I think the advice Des offerered here made a lot of sense.

http://www.bkforum.com/showthread.php?77999-Please-please-help!-Motion-to-dismiss-Trustee-wants-to-convert-to-ch-13-(

If the US trustee is bent on having your case dismissed/converted, and your attorney can't answer it, based on the facts at the time of filing, the all-important snapshot of your finances at the time, just wait it out, then re-file. There are a lot of delaying strategies for the debt, you can use in the months between. I certainly have learned a lot on these threads about that! Six months is not a huge timespan for the unsecured debt, I understand. I was freakin out over not paying mine for three months, but nothing happened in that time span with it.

I totally get that you don't want to work just to pay the unsecured debt, it's a form of indentured servitude, that's why I'm filing, too.

So if you are totally opposed to a Ch 13 for other reasons as well, which I totally understand, then agree for the US trustee to dismiss, then refile in six months.

In the meantime, you deal with the creditors and take charge of the household budget, and determine what you are able to pay and what you don't plan to pay over these intervening months. A whole job in itself, and your pay day comes with the discharge.

[mslaw]

Yes, I guess the issue is, I cannot find another job to work with our children and daycare at this time. Jobs in my field are not plentiful and it's difficult to find any.

As for the biggest issue, our house will be foreclosed on within those 6 months. And we have a 2nd mortgage and the house will have a deficiency.

I cannot even describe how stressed out I am. Even budgeting like mad, we will have rent to pay and our car payment, student loans, and living expenses, there's nothing left to pay a Ch13.

Thanks!

[kawh]

... As for the biggest issue, our house will be foreclosed on within those 6 months. And we have a 2nd mortgage and the house will have a deficiency...

If the house is the biggest concern to you, then chapter 13 could be your friend. Isn't that the way 2nd mortgages get stripped off and other things crammed down (I dunno zip about that, just what I hear here.

Somebody here has a signature line, "In chapter 13, but not in hell." I wonder if that's actually true.

[mslaw]

We won't be keeping the house so I don't think a 13 would help us. We just don't want to be sued or held responsible for the deficiency amount. But we aren't keeping the house. The house is the main reason we filed in the first place. It's depreciating, falling apart and we are 50K upside down in it.

[kawh]

Hmmm. Well, if you have to wait another several months, there are strategies. I heard the Hampster Wheel Game helps homeowners in some situations, you could look into that soon, to be able to stay in your present house as long as possible while you wait to re-file and get rid of the deficiencies.

I can see now, maybe the true most important thing is your stress level. Take care of yourself first, as you are the key person now. Do whatever you have to do, to keep your ability to think all this thru and deal with the decisions.
Be slow to act, none of these things are an emergency now (this was a hard lesson for me to learn this summer). Good luck!

[LadyInTheRed]

Somebody here has a signature line, "In chapter 13, but not in hell." I wonder if that's actually true.

That's me and it is very true. It is true for others too, but might not be the case for mslaw. If you have to decrease expenses below what is reasonable on Schedule J in order to show you can fund the plan, you very well could be in hell during a Chap 13.

Mslaw, I think Kawh is correct that not a lot will happen in 6 months. Even if you creditors were quick to sue and get judgments, it's not the end of the world. If foreclosure happens before you file, your mortgage deficiency will be discharged in bankruptcy. You can get through the six months. After all, you have all of us to help you get through it.

[mslaw]

That's me and it is very true. It is true for others too, but might not be the case for mslaw. If you have to decrease expenses below what is reasonable on Schedule J in order to show you can fund the plan, you very well could be in hell during a Chap 13.

Mslaw, I think Kawh is correct that not a lot will happen in 6 months. Even if you creditors were quick to sue and get judgments, it's not the end of the world. If foreclosure happens before you file, your mortgage deficiency will be discharged in bankruptcy. You can get through the six months. After all, you have all of us to help you get through it.

Thanks LadyInTheRed. I know your Ch13 has worked for you but we wouldn't be able to complete one. We've worked our Schedule J and it wouldn't be feasible. It is true what you said, it works great for some people and not for others. Specifically, also because we have a child who requires trips to Children's Hospital and those bills will always be there and have to be paid periodically. And we have more children who will need braces, etc and do not have any orthodontic coverage with our insurance. Right now we are paying $200 per month just toward 1 child's braces.

I'm hoping and praying we can provide proof that I lost my job and the UST will have a change of heart, but I know he probably will not.

Do we need to worry that our wages could be garnished in the 6 months before we can refile?

[HHM]

As Desp points out, let the case dismiss. That is all you can do.

If you are over when you file, you are over. Someone (you or your attorney) needs to be able to over come the presumption of abuse at that time.

[AngelinaCatHub]

Kawh said it well. Your most important priority is to keep your and your family's health at this time. BK, in my opinion, is one of the most stressful things that you really can't do much about yourself. Stress kills, BK is temporary. You know we here on the Forum will stick with you. 'Hub

[mslaw]

As Desp points out, let the case dismiss. That is all you can do.

If you are over when you file, you are over. Someone (you or your attorney) needs to be able to over come the presumption of abuse at that time.

OK but this doesn't help my situation of what do we do about the foreclosure, deficiency, credit cards that will go into default? I realize why they are dismissing. I'm not asking for an explanation of that. However, what the courts have us "over" by is $37 a month and for that they are saying we have too much DMI. We thought we had it covered.

[ld2366eh]

Do you have a lawyer for foreclosure defense? They can stretch a foreclosure out for months. Our bk attorney is also planning a foreclosure defense for us. Maybe you can set up a free consult and talk to a FD attorney?

[hmsmith]

I don't have a lot of advice, but I'm wondering, what does your attorney say about all this? I know you have calls into him, but have you spoken to him/her after hearing they want to dismiss and if so, what do they recommend? (sorry if you mentioned this in another post)

I understand the stress you talk about. I've been there, I worried about EVERYTHING leading up to the time we filed and during the process. My mind would run away with every single "what if" scenario possible, and NONE of it actually happened. I literally made myself SICK with worry. I have never felt that way in my life, and I've always been a HUGE worry wart, but this, this was different. I felt his heavyness in my chest, I couldn't sleep, felt like throwing up. It consumed me. And, in the end, LIFE GOES ON. I know it's hard, but you will get through this.........One . day. at . a. time. One foot in front of the other. For me personally, my faith got me through this.

You mentioned paying for braces, can you possibly make smaller payments since you are struggling financially at this time? And I don't know a lot about judgements, but, wouldn't they be dismissed once you file BK? (meaning they would go away??) I really don't know about them. I've heard it can take up to a year or longer for a credit card to actually sue you.

At any rate, your worrying won't change the outcome of this. If you get dismissed I would seek out another attorney if you're not happy with the one you have, and re file.

I know I wasn't much help, but I just wanted to say I understand and I sympathize with you. ((((((((HUGS))))))))

[keepsmiling]

So... to understand this correctly... you are not yet in default of the cc's?
And you have a whopping $37 a month that they want you to pay into a 13?

[Postbankrupt]

With today's economy, many people haven't paid their mortgages in over a year and they are still in their homes. So if it has only been a few months it is not likely you will be evicted anytime soon. Banks bend over backwards to keep people in their homes nowadays. In order for companies to garnish your wages they have to have a judgment first so it would take several months for any of that to occur.